Conclusion

The objective of the study was to develop a better understanding of those factors that determine the performance of LOCs in the timber projects of the PNG forest industry, and guiding this study towards the achievement of this objective is the research question: Are the landowners actually benefiting from their LOCs in the timber projects of the PNG forest industry? Given the limited availability of information specific to those LOCs of interest, the study has had to be conducted in two phases. Phase 1 of the study was intended to develop major research themes, hence the adoption of a quality research study approach with an exploratory focus that used a case study (CS) research strategy and grounded theory (GT) as a research methodology, supported by in-depth interview and probing techniques.

This chapter contains the results for Phase 1 of the study. The results are in the form of themes and were presented according to the four theme categories, namely: ‘Organisation of LOC business’, ‘Management of LOC business’, ‘LOC business group’ and ‘Support by the PNGFA’. Accordingly, summaries of each of the theme categories contained in Section 4.5 are as follows: The theme category ‘Organisation of LOC business’, comprises seven generalised (integrated) themes that resulted from the process of axial and selective coding of GT, namely: company structure elements, LOC objectives, LOC business plan, management structure and landowner representation, appointment of LOC executive, LOC business contract, and LOC capacity. Each of these integrated themes contained a number of initial themes that resulted from the process of initial coding of GT. Drawing from these initial themes, a summary of the generalised themes are as follows:

 Company structure elements: the three LOCs were noted to be without necessary company structure elements;

 LOC objective: the landowners from the three LOCs have high expectations for social or service related projects from their LOC (as per landowner perception of objectives for their LOC);

 LOC business plan: The three LOCs had business plans that were poorly done, lacked technical details and did specify any tangible outcomes;

 Management structure and landowner representation: the three LOC structures offer only limited landowner representation;

 Appointment of LOC executive: appointment of landowners to the LOC executive positions of the three LOCs was poorly done and greatly influenced by individuals with

vested interests, resulting in poor landowner representation in the composition of the executive;

 LOC business contract: business contracts for the three LOCs were poorly done, lacked technical details, and were not beneficial to the landowners;

 LOC capacity: the three LOCs lacked technical, financial and human capacity.

The theme category ‘Management of LOC’, comprised four generalised (integrated) themes that resulted from the process of axial and selective coding of GT, and they are: mandatory company responsibilities, funding of development projects, business contract enforcement, and

working relationships. Each of these integrated themes contained a number of initial themes that resulting from the process of initial coding of GT. Drawing from these initial themes, a summary of the generalised themes are as follows:

 Mandatory company responsibilities: The three LOC executives failed to uphold the mandatory company responsibilities;

 Funding of development projects: The three LOC executives were never committed to funding or support of construction of development projects (public infrastructures and other);

 Business contract enforcement: the three LOC executives never ensured that the logging companies adhered strictly to the conditions of the business contract;

 Working relationships: the three LOC executives worked in isolation from the landowners; and the business leader was never seen to be working closely with his executive members.

The theme category ‘LOC business group’, comprises a generalised (integrated) theme that resulted from the process of axial and selective coding of GT, and that is: suitability of the LOC business group. Drawing from these initial themes, a summary of the generalised theme is as follows:

 Suitability of the LOC business groups: The LOC business group for the three LOCs is big, diverse, complex, and lacked strcuture.

The theme category ‘Support by PNGFA’, comprises a generalised (integrated) theme that resulted from the process of axial and seletive coding of GT, and that is : support by PNGFA.

 Support by PNGFA: The support by PNGFA to the landowners from the three LOCs was limited or hardly perceptible.

With these findings, the research question was revisited. The question of whether landowners from the three case study LOCs have actually benefited from their LOCs, and the issues highlighted by the various themes, indicate problems relating to the organisation of LOCs, the management of the LOCs, LOC business groups, and support by PNGFA. These problems have contributed towards the LOCs’ inability to perform as companies and to deliver on the many expectations of the landowners. Hence the answer as, No.

The findings of Phase 1 of the study highlighted a number of key problem areas or factors that have determined the performance of LOCs in the timber projects of PNG’s forest industry, that need to be explored. This would requires a more detailed study that explores at greater depths the various aspects of LOC businesses. A different study approach for Phase 2 of the study is clearly required, and guiding that are a number of specific research questions, which include:

1. Is the organisation of the three case study LOC businesses adequate and appropriate?

2. Have the three LOC executives delivered their management responsibilities adequately and professionally?

3. How capable are the three LOC businesses of performing to the expectations of landowners?

4. How capable are the landowner groups of pursuing their interests through their LOC businesses?

5. Could PNGFA do any better in their support to the landowners in their many issues, as well as with their development needs?

6. What are the key institutional barriers to LOC business success?

4.7 Chapter Summary

Phase 1 of the study led to the development of major research themes as presented in this chapter. These themes highlighted issues relating to the various aspects of LOC businesses. The conclusions from the various themes indicated issues relating to the organisation of LOCs, the

management of LOCs, LOC business groups, and support by PNGFA. These have been the reason for the LOCs’ failure to deliver meaningful benefit to their respective landowners. The research themes will be adopted in Phase 2 of the study. Guiding Phase 2 of the study are some specific research questions (Section 4.6), each focusing on specific problem areas as highlighted in the summary of themes (findings).

Phase 2 of the study will take a different approach that involves a survey. The various issues relating to the different aspects of LOC businesess will be incorporated into the survey, which will be administered over a large population. The details of the study approach for Phase 2 of the study are presented in the next chapter.